Hemi Energy Group Announces Lease Sale Negotiations
Tuesday April 22, 9:42 am ET

FORT WORTH, Texas--(BUSINESS WIRE)--Hemi Energy Group, Inc. (Pink sheets: HMGP - News) is in negotiations to sell some of its leases, while maintaining royalty interest, to be pooled with other leases held by major oil companies in the Fort Worth area. These companies have major developmental drilling programs in the Barnett Shale leases they own and are still acquiring in greater Fort Worth. Hemi has added more and will continue to add to its checkerboarding lease holdings in Fort Worth that will absolutely be legally required "well spacing requirements" before major oil companies can obtain a permit to drill. They are also looking at the values of some of Hemi's leases far from Fort Worth, but within less than five miles of where there is active deep drilling of wells or wells producing millions of dollars per year per well.

Hemi's next two wells, to be drilled near term, are in the Cherry Creek Trend in Woodson County, Kansas. The Weseloh and Driskell virgin leases are in the above Trend and within a 4 mile radius of our 5 producing leases. The Trend area has had more than 25 intent to drill permits filed by other companies, some of which have already become new oil wells on virgin leases, and is a large increase since the latter part of 2007. We have gained confidential new knowledge about several wells production and the large increase in intent to drill permits reflects others have also learned about the oil values in this trend. Our next two new wells will be drilled in close proximity to some of these excellent producing wells of other oil companies.

The results from the completion of the fracing and completion techniques on the Collins lease should give us a barrel count per day to be released before mid-May. Keith Anderson, Hemi CEO, on site during the drilling of this well, said, "Drill cutting samples from pay zones were bleeding oil as I was holding them." Mr Anderson continued to say, "This is not a mature lease and should have production similar to our mature leases in Kansas when they were first drilled. The new completion techniques are vastly improved from the ones used in the early days of this area of southeast Kansas. A strong gas water solution drive is likely to be present in this new oil well and through out this lease. Therefore, the production and the decline curve should be much better than wells drilled on mature leases that have lost most of this drive."

The extrapolation of the results from the three wells, management believes, will add significant production and reserve values to our lease holding in southeast Kansas. Management's beliefs are based on well logs, coring and drill cutting samples, reserve report information and confidential information obtained from government sources, service companies and vendors in this area of Kansas. Therefore, the artificially low market cap is subject to being revised upward based on all the above significant events near term.

Hemi Energy Group is an independent crude oil and natural gas producer employing a unique business model capitalizing on technological advances to exploit mature fields with millions of barrels of proven oil remaining in the ground.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995

Statements in this press release relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments, and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, risk factors inherent in doing business. Forward-looking statements may be identified by terms such as "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "forecasts," "potential," or "continue," or similar terms or the negative of these terms. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. The Company has no obligation to update these forward-looking statements.